0:00:02 > 0:00:05Hello. Now, have you ever thought about changing career
0:00:05 > 0:00:07and maybe having a go at something new?
0:00:07 > 0:00:09Hmm, property developing appeals to many people
0:00:09 > 0:00:11looking for a lifestyle change.
0:00:11 > 0:00:15Yeah, but it's not that easy to get started, but one way to possibly
0:00:15 > 0:00:19get yourself a flying start is to go to your local property auction.
0:00:45 > 0:00:48Well, the law of the auction room is very strong,
0:00:48 > 0:00:49but what should you buy?
0:00:49 > 0:00:53You could set your heart on one thing and somebody outbids you.
0:00:53 > 0:00:56So you really do need to do your research on a few properties
0:00:56 > 0:00:58to keep your options open.
0:00:58 > 0:01:01So let's take a look at what our buyers bid for on today's show.
0:01:03 > 0:01:06First up, we head to Raynes Park in London,
0:01:06 > 0:01:09'when I think I may need to buy a new hat.'
0:01:09 > 0:01:12- You've got engaged!- Yes.- Yeah.
0:01:12 > 0:01:15And I'm teeing off in Twechar!
0:01:15 > 0:01:17- I play golf.- Are you good?
0:01:17 > 0:01:19- Modest.- Handicap?- Eight.
0:01:19 > 0:01:22Oh! What do you mean modest? That's pretty good, isn't it?
0:01:23 > 0:01:27And in Chesterfield, the numbers are still shocking!
0:01:27 > 0:01:31- So what's the budget for the work? - 5,000.- Five!- Yeah.- Wow!
0:01:31 > 0:01:33Tight, tight, tight, tight!
0:01:35 > 0:01:37All these properties have been sold at auction.
0:01:37 > 0:01:40We'll find out who bought them and what they paid for them
0:01:40 > 0:01:41when they went under the hammer.
0:01:41 > 0:01:43- GAVEL BANGS - Sold to you.
0:01:49 > 0:01:52Raynes Park is an increasingly popular South London suburb
0:01:52 > 0:01:56and a one-minute walk to central Wimbledon with its tube station
0:01:56 > 0:01:59and plethora of shops and cafes.
0:01:59 > 0:02:01Tip from me, though - if you are walking...
0:02:04 > 0:02:08..make allowances for the ever-changeable British weather!
0:02:08 > 0:02:09And take your brolly!
0:02:10 > 0:02:14This is an attractive but rather busy road.
0:02:14 > 0:02:17And it doesn't look like parking will be easy along here,
0:02:17 > 0:02:20which does concern me.
0:02:20 > 0:02:22However, the one-bedroom flat I'm here to see
0:02:22 > 0:02:24is in this period conversion,
0:02:24 > 0:02:28which will always command more money than a purpose-built flat.
0:02:28 > 0:02:32And I think, for £200,000 in this booming market,
0:02:32 > 0:02:35I think it could be an exciting find.
0:02:36 > 0:02:39Well, it might need a bit of a make-over on the outside,
0:02:39 > 0:02:42but one bit of good news is that it's on the ground floor.
0:02:44 > 0:02:47Ooh! Cold, windy, rainy days filming Homes Under The Hammer!
0:02:47 > 0:02:51Now, you must never let that put you off when you're looking at property,
0:02:51 > 0:02:55because this flat in the summer will have a completely different feel.
0:02:55 > 0:02:57- SHE SNIFFS - Although it does smell a bit damp
0:02:57 > 0:02:59when you first walk in this property.
0:02:59 > 0:03:02Good-sized room here, though, to the front of the building.
0:03:02 > 0:03:06And through here - a-ha! - now, I don't think this is damp.
0:03:06 > 0:03:10This looks more like condensation, where it's been trapped,
0:03:10 > 0:03:12there's probably been a big cupboard in front of that.
0:03:12 > 0:03:15That's due to poor ventilation.
0:03:15 > 0:03:18So I'd certainly get something like that checked out.
0:03:18 > 0:03:20Yes, check it out, you should.
0:03:20 > 0:03:22If it's damage caused by condensation,
0:03:22 > 0:03:26then it could be a superficial problem and quite easy to sort out.
0:03:27 > 0:03:30But damp caused by more intrinsic problems, well,
0:03:30 > 0:03:34that could be much more expensive and time-consuming to deal with.
0:03:37 > 0:03:39Now, there's something I haven't told you.
0:03:39 > 0:03:44This is a one-bedroom GARDEN flat, so, with this property,
0:03:44 > 0:03:46you do get a little slice of the garden.
0:03:46 > 0:03:50Yes, it is very long and thin, but you do have outside space
0:03:50 > 0:03:52and a one-bedroom garden flat sounds
0:03:52 > 0:03:56so much better than a one-bedroom flat!
0:03:56 > 0:03:57# I like it.
0:03:57 > 0:04:00# I like what she's putting down! #
0:04:02 > 0:04:06While it might sound better, the flat looks and smells less good
0:04:06 > 0:04:11on the inside and the condensation continues in the lounge.
0:04:11 > 0:04:15It could be draughty too, as those windows have just, well, had it.
0:04:15 > 0:04:19Heading out the back now, things are not improving.
0:04:19 > 0:04:24There's a dated kitchen and, off it, a bathroom and toilet.
0:04:24 > 0:04:26It all feels like a hodgepodge.
0:04:26 > 0:04:28Not really working for me at all
0:04:28 > 0:04:32and I'd want to be bashing down some walls.
0:04:32 > 0:04:36But something to bear in mind is that this is a leasehold flat,
0:04:36 > 0:04:38so, before you start making any structural changes,
0:04:38 > 0:04:42you'll need to get permission.
0:04:42 > 0:04:45On the plus side, this is a fair-sized property and maybe,
0:04:45 > 0:04:49with a clever rejig, you could make it a two-bedder. But that might be
0:04:49 > 0:04:52too big an investment for what you could get back,
0:04:52 > 0:04:57even if you manage to get it for the £200,000 guide price.
0:04:57 > 0:05:00Another plus is the presence of a central heating system,
0:05:00 > 0:05:04but I'd want to get that checked out.
0:05:04 > 0:05:07Use all five of your senses when viewing a property
0:05:07 > 0:05:11and also the sixth one - common sense!
0:05:13 > 0:05:17When you view a property, it's not only important to look up
0:05:17 > 0:05:21and around you for any issues, you should also look down.
0:05:21 > 0:05:24Now, beneath my feet are old wooden floorboards
0:05:24 > 0:05:26which are vulnerable to woodworm.
0:05:26 > 0:05:29Can you see the small tell-tale holes that indicate
0:05:29 > 0:05:32the presence of household pests?
0:05:32 > 0:05:37Now, these are a sign that woodworm does need to be treated here. Hmm!
0:05:37 > 0:05:40Now, this can usually be done with chemical insecticides,
0:05:40 > 0:05:42but on occasion, and if it is too severe,
0:05:42 > 0:05:46the offending area might have to be removed completely.
0:05:46 > 0:05:47Always keep your eyes to the ground,
0:05:47 > 0:05:51as this will impact your timescale and your budget.
0:05:51 > 0:05:56# You better knock, knock knock...on wood... #
0:05:56 > 0:06:00Never a nice find and something that needs to be addressed straightaway.
0:06:02 > 0:06:05Time to call on the opinion of the local estate agent.
0:06:05 > 0:06:09What does she think of this flat with its potential and its pitfalls?
0:06:10 > 0:06:13I think that there is probably some maintenance issues
0:06:13 > 0:06:16that have to be addressed. And then, you can go along
0:06:16 > 0:06:19to actually the dressing of the property,
0:06:19 > 0:06:22but I think, initially, the property needs to be gone through
0:06:22 > 0:06:27from top to bottom to make sure that it is in very good basic condition.
0:06:27 > 0:06:28The agent is right.
0:06:28 > 0:06:30This property does need a thorough going over
0:06:30 > 0:06:36and she reckons, to do the basics, it could cost around £25,000.
0:06:36 > 0:06:41With a guide price of 200,000, that's not an inconsiderable amount.
0:06:41 > 0:06:44So, if you did do it up and decided to rent it out,
0:06:44 > 0:06:46what return could you expect?
0:06:46 > 0:06:49I don't see that there would be any problem at all in achieving
0:06:49 > 0:06:53£1,250 per calendar month for this property.
0:06:53 > 0:06:56And what could this property sell on for?
0:06:56 > 0:06:59Once renovated, I think this property could easily sell
0:06:59 > 0:07:04for anything in between £350,000 to £375,000.
0:07:04 > 0:07:06So, still a profit to be made,
0:07:06 > 0:07:10even with those possible hefty renovation costs.
0:07:10 > 0:07:14But if you were planning to sell in London's rapidly growing market,
0:07:14 > 0:07:17would you even have to spend that?
0:07:17 > 0:07:21The property prices in SW20 are soaring.
0:07:21 > 0:07:24It literally seems to be that the price tag is going up
0:07:24 > 0:07:26on a daily basis, certainly weekly basis.
0:07:26 > 0:07:31I would, knowing that there could possibly be quite some work here,
0:07:31 > 0:07:34just sell the property on.
0:07:34 > 0:07:38So you could be looking at a profit, even if you did decide
0:07:38 > 0:07:42to sell the property on without doing any work at all!
0:07:42 > 0:07:45There are a few issues to address with this flat,
0:07:45 > 0:07:47but it's in a really convenient position
0:07:47 > 0:07:52and it's always sensible to buy in an area where prices are on the up.
0:07:52 > 0:07:55Let's see who agreed when we went to auction.
0:07:56 > 0:08:00I think I've got a realistic reserve on this. 200 anywhere?
0:08:00 > 0:08:02200 with you? 205.
0:08:04 > 0:08:05205 with you.
0:08:05 > 0:08:08210. 215.
0:08:09 > 0:08:10220.
0:08:12 > 0:08:14- 224.- 224.
0:08:15 > 0:08:18£224,000.
0:08:18 > 0:08:21225 elsewhere.
0:08:21 > 0:08:22'The auction was packed
0:08:22 > 0:08:25'and there was plenty of bidding on this property.
0:08:25 > 0:08:30'We rejoin it at £248,000.'
0:08:30 > 0:08:34248, with you. 249. Someone else trying to bid?
0:08:34 > 0:08:35249, with you.
0:08:35 > 0:08:39250. 251.
0:08:39 > 0:08:42251. 252.
0:08:42 > 0:08:45251, to you. 252 elsewhere.
0:08:45 > 0:08:48If not, 251, first time...
0:08:48 > 0:08:50second time...
0:08:50 > 0:08:53third and last time, if you are all done.
0:08:53 > 0:08:55- GAVEL BANGS - Sold. 251.
0:08:57 > 0:09:03Although the hammer went down on 251,000, Anita and Behar,
0:09:03 > 0:09:07the new owners, negotiated a £1,000 discount from the vendor,
0:09:07 > 0:09:11meaning they pay 1% instead of 3% stamp duty.
0:09:13 > 0:09:16If they seem familiar, it's because we've met them before,
0:09:16 > 0:09:19when they bought their first investment property
0:09:19 > 0:09:20just a few minutes down the road,
0:09:20 > 0:09:23and when the weather was a bit better.
0:09:23 > 0:09:27They made a real success of that, selling it on for a hefty profit
0:09:27 > 0:09:32and it looks like they've come back for more bites of the cherry.
0:09:32 > 0:09:34I can't wait to find out more.
0:09:34 > 0:09:37- So you're back at it. - We are.- Yeah, we're at it.
0:09:37 > 0:09:40And, um, this one's going to be a real challenge.
0:09:40 > 0:09:43- This one isn't as beautiful as the other one.- No.
0:09:43 > 0:09:45The other one hardly needed anything doing to it.
0:09:45 > 0:09:47- This needs a tad more. - It does, yeah.
0:09:47 > 0:09:50- Well, it was the first time, wasn't it, last time?- The first time.
0:09:50 > 0:09:52- A perfect first timer. - So now it's the second time!
0:09:52 > 0:09:55- Bit more of a challenge. - Bit more challenging, yeah.
0:09:55 > 0:09:58So what is that in the bedroom? Damp or condensation?
0:09:58 > 0:10:01Condensation, actually, you're right, it's condensation.
0:10:01 > 0:10:04- Because damp and condensation are two very different things.- Yeah.
0:10:04 > 0:10:06- Strike damp.- OK. - It's not damp.- Yes.- No damp.
0:10:06 > 0:10:09To what extent have you had that researched? All the black moulds?
0:10:09 > 0:10:12- Not yet, but we are going to get an expert in to have a look.- We are,
0:10:12 > 0:10:15but I've gone round and felt the walls and they seem OK to me.
0:10:15 > 0:10:18So you have got some woodworm. How are you planning on treating that
0:10:18 > 0:10:21- and are you worried about that? - Not worried.- Not really.
0:10:21 > 0:10:24But I think the floorboards will come up and it'll just be replaced.
0:10:24 > 0:10:26The builder's coming on Monday, he's the expert,
0:10:26 > 0:10:29so we'll run through it with him, but we'll make sure everything is
0:10:29 > 0:10:33absolutely tiptop before we start putting it back together again.
0:10:33 > 0:10:34So, come on, what's the big plan?
0:10:34 > 0:10:38What are you going to do to this flat? Completely change the layout?
0:10:38 > 0:10:40Are you going to make it more spacious?
0:10:40 > 0:10:43Are you going to leave the bathroom at the back? What is the plan?
0:10:43 > 0:10:46Plan A was to demolish this side wall,
0:10:46 > 0:10:49- put steels in and go out sideways. - OK, and go across?
0:10:49 > 0:10:52- And turn it from a one into a two-bedroom flat.- Yeah.
0:10:52 > 0:10:55- And this would be the living space. - OK.- Great idea!- Costly.
0:10:55 > 0:10:58- We've let that go. It's not profitable.- OK, plan B?
0:10:58 > 0:11:03- Plan B is to replace everything as is.- Yeah.
0:11:03 > 0:11:06- And, as we said before, posh it up.- Posh it up.
0:11:06 > 0:11:11I remember using those exact words last time I saw you.
0:11:11 > 0:11:14So you could just work within the confines of everything you have?
0:11:14 > 0:11:17- Yes.- Exactly.- And tart it up a bit? - Exactly, absolutely.- Yeah.
0:11:17 > 0:11:21I was thinking that you might be able to think about
0:11:21 > 0:11:23moving the bathroom further along here,
0:11:23 > 0:11:26so you have your bathroom in this area and then,
0:11:26 > 0:11:29right at the back, you have the kitchen with access to the garden,
0:11:29 > 0:11:31because all the plumbing is here.
0:11:31 > 0:11:33- You've got quite a lot of space. - There's a thought.
0:11:33 > 0:11:35Our biggest challenge is keeping costs down.
0:11:35 > 0:11:38Come on, what's the budget, Anita?
0:11:38 > 0:11:41Well, we... We think probably about 20.
0:11:41 > 0:11:44- We may well...- I...- I mean, Behar would like to spend less, probably.
0:11:44 > 0:11:46- 15?- I don't want to see a two in it.
0:11:46 > 0:11:49- ANITA LAUGHS: He doesn't want to see a two!- So demanding, Behar!
0:11:49 > 0:11:52No, no, I don't mind a nine. A one-nine.
0:11:52 > 0:11:55- But not a two-zero.- Right.
0:11:55 > 0:11:57So, that's my plan, that's my challenge,
0:11:57 > 0:11:58and that's what I hope to do.
0:11:58 > 0:12:00So what's your timescale?
0:12:00 > 0:12:05I reckon we'll have this completely poshed up within two months.
0:12:05 > 0:12:08'Hmm, well, that sounds ambitious to me.
0:12:08 > 0:12:11'A pretty low budget for all the work needed and two months?
0:12:11 > 0:12:13'Well, it doesn't sound long.
0:12:13 > 0:12:16'Anita's going to take control of the project management,
0:12:16 > 0:12:19'with a little help from their builder, whilst Behar will
0:12:19 > 0:12:24'help out when he has time around his job as a wellbeing consultant.
0:12:24 > 0:12:28'The plan is to make the flat all-singing, all-dancing
0:12:28 > 0:12:30'before selling it on.
0:12:30 > 0:12:33'Behar hopes it will be worth three-five-zero,
0:12:33 > 0:12:37'or 350 grand, once it's finished.'
0:12:37 > 0:12:39It's all very exciting for you two!
0:12:39 > 0:12:41So what else have you been up to?
0:12:41 > 0:12:44- Um...- Well... - Well, we got engaged last year.
0:12:44 > 0:12:45- You got engaged?!- Yes.- Yeah.
0:12:45 > 0:12:48- Do you have a little cheeky sparkler?- We have the proof.
0:12:48 > 0:12:49A very cheeky little sparkle.
0:12:49 > 0:12:52Congratulations, guys!
0:12:52 > 0:12:55- Are you planning on actually getting married soon?- Soon.
0:12:55 > 0:12:59- In a few months, probably about five months' time, I think.- Really?
0:12:59 > 0:13:02# Diamonds are a girl's best friend... #
0:13:04 > 0:13:06Mm-hm, that is lovely news, but Anita and Behar
0:13:06 > 0:13:11had better get cracking as they now have two very important deadlines -
0:13:11 > 0:13:13renovation and nuptial.
0:13:15 > 0:13:18Guys, it's been such a treat seeing you again. Congratulations.
0:13:18 > 0:13:20- Great news about the wedding too. - Thank you.- Well done.
0:13:20 > 0:13:22Thank you. Lovely to see you.
0:13:24 > 0:13:29Ho-ho! Such exciting news that Anita and Behar are engaged!
0:13:29 > 0:13:32Is this rough diamond going to be sparkling
0:13:32 > 0:13:35within their ambitious two month timescale?
0:13:35 > 0:13:38They've certainly got plenty to do here before they get married.
0:13:38 > 0:13:40And that condensation? Well, let's just hope
0:13:40 > 0:13:43it doesn't turn out to be anything more sinister.
0:13:43 > 0:13:46Join me later in the programme and you can see how they get on.
0:13:50 > 0:13:52From diamonds to coal now
0:13:52 > 0:13:55and the former mining village of Twechar,
0:13:55 > 0:13:58around a 25-minute drive from Glasgow.
0:13:58 > 0:14:00The village sits in open countryside
0:14:00 > 0:14:04beside the recently reopened Forth and Clyde Canal.
0:14:04 > 0:14:08The place was quite down in the dumps after all the mine closures.
0:14:08 > 0:14:11But there's a sense of regeneration here,
0:14:11 > 0:14:13in this eminently commutable village.
0:14:13 > 0:14:17# Warmth of the sun
0:14:17 > 0:14:20# When the pain stops... #
0:14:22 > 0:14:25Well, just on the north side of the village,
0:14:25 > 0:14:28on the other side of the estate from the canal,
0:14:28 > 0:14:30is the property I'm here to see.
0:14:30 > 0:14:33Surrounded by some fairly, well, pretty looking hills. Well,
0:14:33 > 0:14:35- they would be if you could see them. - HE LAUGHS
0:14:35 > 0:14:38The property itself, though, looks fairly decent.
0:14:38 > 0:14:40It's a two-bedroom mid-terrace.
0:14:40 > 0:14:43And a guide price of £48,000-plus,
0:14:43 > 0:14:46if I can find a way in through the gate. Let's have a look.
0:14:49 > 0:14:51Ooh! Always good to get inside on a day like today.
0:14:51 > 0:14:53And what do we find when we get there?
0:14:53 > 0:14:56Well, through the front door, um, facing you, a downstairs loo
0:14:56 > 0:14:59and a little cloakroom. That's really useful.
0:14:59 > 0:15:01Stairs up to the bedrooms there.
0:15:01 > 0:15:04And through into a dual-aspect lounge,
0:15:04 > 0:15:07meaning windows on both ends. Lots of light in here, which is good.
0:15:07 > 0:15:09A few little features. I like that.
0:15:09 > 0:15:13It'd be nice if it was an open fire, but at least it's something
0:15:13 > 0:15:15you could sort of create something around.
0:15:15 > 0:15:19It doesn't seem to be in too bad condition. I mean, overall.
0:15:19 > 0:15:22A lick of paint here and there. And likewise in the kitchen.
0:15:22 > 0:15:25It could do with a bit of a refurbishment.
0:15:25 > 0:15:27But I like the layout. It just sort of works.
0:15:27 > 0:15:31It's almost big enough for a table in here. So a nice family space.
0:15:31 > 0:15:34But either way, spend a bit of money in here, um...
0:15:34 > 0:15:35Your door's out to the back garden.
0:15:35 > 0:15:39I mean, it just has a really nice feel to it straightaway.
0:15:39 > 0:15:41Just before I nip upstairs,
0:15:41 > 0:15:45there's something out the back window that's caught my attention.
0:15:46 > 0:15:49Well, just behind the house - a bit of open ground
0:15:49 > 0:15:51and nice views out to the hills.
0:15:51 > 0:15:55However, you also notice a bit of construction going on.
0:15:55 > 0:15:57Some new houses being built down there.
0:15:57 > 0:16:00On first glance, you might thing, oh, that's not so good.
0:16:00 > 0:16:01But actually, I think it is good.
0:16:01 > 0:16:06It means that someone, a developer, is confident enough in the area
0:16:06 > 0:16:09and the potential for house prices and general regeneration here
0:16:09 > 0:16:12to be putting money into building new homes.
0:16:12 > 0:16:16So, when I see that, I think that's a big tick for the area.
0:16:16 > 0:16:19And it looks like the clouds are lifting over the area
0:16:19 > 0:16:21in more ways than one.
0:16:21 > 0:16:26Anyway, after that diversion, time to head back to the house.
0:16:26 > 0:16:29Up here and the fairly simple but effective layout continues.
0:16:29 > 0:16:32Bathroom and loo where it should be, at the top of the stairs.
0:16:32 > 0:16:35Two decent-sized bedrooms.
0:16:35 > 0:16:39Um, and, yeah, it is - as I said - exactly what you'd hope it to be.
0:16:39 > 0:16:43Built-in wardrobes in here, double glazing, nice views out the windows.
0:16:43 > 0:16:46Again, you can see that big development going on there.
0:16:46 > 0:16:51But it feels really open. It's just a nice house.
0:16:52 > 0:16:55I reckon this has to be a great buy for a first-time buyer,
0:16:55 > 0:16:57or for a novice developer.
0:16:57 > 0:17:03Although less work needed could mean less room for a profit.
0:17:03 > 0:17:05On the whole, I don't see how you could go wrong,
0:17:05 > 0:17:09if you got it for anything like that guide price of 48,000.
0:17:10 > 0:17:12Let's see what a local property agent
0:17:12 > 0:17:15thought of the house and its location.
0:17:15 > 0:17:18The village of Twechar is very centrally positioned in Scotland.
0:17:18 > 0:17:21It's very handy for commuting. You're only a couple of minutes
0:17:21 > 0:17:24from getting up onto the M80 here. So that's certainly quite handy.
0:17:24 > 0:17:27The express train gets into Glasgow Queen Street in 12 minutes.
0:17:27 > 0:17:30And you can get to Edinburgh Waverley within 35 minutes.
0:17:30 > 0:17:32So it's certainly very centrally positioned.
0:17:32 > 0:17:35It sounds like you can't fault the location,
0:17:35 > 0:17:37so what about the property?
0:17:37 > 0:17:40I think what really stands out is the size of the living room.
0:17:40 > 0:17:43That's probably going to be the main selling point.
0:17:43 > 0:17:45The fact there's a window to the front, a window to the rear,
0:17:45 > 0:17:48it's very light, you've got good views to both sides.
0:17:48 > 0:17:51In terms of work needing done, it's mainly decorative work.
0:17:51 > 0:17:54I feel the downstairs toilet will probably need to be replaced.
0:17:54 > 0:17:58The bathroom suite upstairs would again need to be replaced as well.
0:17:58 > 0:18:00Most of the work other than that is decorative.
0:18:00 > 0:18:03It's got gas central heating, double glazing, the main things
0:18:03 > 0:18:05and the expensive things have already been done.
0:18:05 > 0:18:08The kitchen for rental purposes would actually be quite liveable.
0:18:08 > 0:18:11It wouldn't necessarily need to be replaced at this stage.
0:18:11 > 0:18:14It is difficult to fault this house.
0:18:14 > 0:18:17But does that niggle I have about not being able to add value
0:18:17 > 0:18:20make this less of an attractive proposition?
0:18:21 > 0:18:25If you got it for near that guide price of 48,000,
0:18:25 > 0:18:28it wouldn't need much to do it up.
0:18:28 > 0:18:31So what could it get on the open market?
0:18:31 > 0:18:35I feel it has the potential to achieve around about £70,000.
0:18:35 > 0:18:38The rental potential on a property like this, once done up to a
0:18:38 > 0:18:43slightly more modern standard, would be around £500 per calendar month.
0:18:43 > 0:18:45It's all sounding like good news to me,
0:18:45 > 0:18:47but even when you make a good return,
0:18:47 > 0:18:50regardless of whether you rent or sell the property,
0:18:50 > 0:18:53it's always worth looking at the bigger picture.
0:18:53 > 0:18:55If you're in a position to hold on to the house,
0:18:55 > 0:18:59look at what's happening to the property market in the area.
0:18:59 > 0:19:02I think, in the present market, which is still quite depressed
0:19:02 > 0:19:05across central Scotland, you would be best to rent the property out.
0:19:05 > 0:19:08It's certainly got good resale potential in the future.
0:19:08 > 0:19:11Now probably isn't the best time to be selling.
0:19:11 > 0:19:15Well, it may not be one of the most glamorous of properties,
0:19:15 > 0:19:18but it's a house where the design just works.
0:19:18 > 0:19:20And I really like it.
0:19:20 > 0:19:23Let's see who agreed when it went under the hammer.
0:19:24 > 0:19:25£40,000.
0:19:25 > 0:19:27Got to be worth 40.
0:19:27 > 0:19:2935, then?
0:19:30 > 0:19:32Need a bid, can't sell it without one.
0:19:32 > 0:19:3635 here. At £35,000, I'm bid now in once.
0:19:36 > 0:19:38At £35,000.
0:19:38 > 0:19:42First time, then, at £35,000. One bid might get it.
0:19:42 > 0:19:4436, new bidder. 37?
0:19:45 > 0:19:4838. 39.
0:19:48 > 0:19:5240. Thinking about it. With you at £39,000.
0:19:52 > 0:19:54Back in at 40. 41?
0:19:55 > 0:19:5941 I've got. 42? 43?
0:20:01 > 0:20:0543 I've got, 44...shake of the head. With you at 43.
0:20:06 > 0:20:10At £43,000 then. 43 for the second time...
0:20:11 > 0:20:14At £43,000 then, all done, all out....
0:20:15 > 0:20:22I'll take it - 43 and a half, 44. Half? You're out, with you at 44.
0:20:22 > 0:20:25At £44,000 then, second time, third time...
0:20:25 > 0:20:27all out, all done...
0:20:27 > 0:20:32selling away. Well done, sir. Your paddle number, please.
0:20:33 > 0:20:36Holding his nerve in that last-minute flurry was Ian,
0:20:36 > 0:20:40who got this at what I reckon was a snip of £44,000.
0:20:40 > 0:20:44That's £4,000 under the guide price.
0:20:44 > 0:20:48Having retired from banking four years ago, he's looking for
0:20:48 > 0:20:51a decent investment, and has splashed out
0:20:51 > 0:20:53on his first auction purchase.
0:20:53 > 0:20:56Though he's no stranger to the rental market, he has
0:20:56 > 0:20:59one rental property already and previously
0:20:59 > 0:21:02has rented out a flat in Aberdeen.
0:21:02 > 0:21:04- Ian, congratulations. - Thank you very much.
0:21:04 > 0:21:06Tell me why you wanted to buy this house.
0:21:06 > 0:21:12Came on the market, I stay locally, I thought it's a bargain.
0:21:12 > 0:21:15I thought I'd come along and have a look at it and see how it goes.
0:21:15 > 0:21:17Is this something that you do a lot of?
0:21:17 > 0:21:20I have done in the past, we brought a property that was run-down
0:21:20 > 0:21:22and renovated it and eventually sold it on,
0:21:22 > 0:21:27- and I thought, "We can do this again."- Right.
0:21:27 > 0:21:30With a view to doing that, doing it up and selling it?
0:21:30 > 0:21:33Ultimately, yes, but I think this one we'll probably rent out.
0:21:33 > 0:21:36What's driven you to that thought?
0:21:36 > 0:21:38Well, money lying in the bank getting no interest.
0:21:38 > 0:21:43Perchance you get a much better return on a modest investment here.
0:21:43 > 0:21:45Yeah, sure. And how was the auction?
0:21:45 > 0:21:50Quite exciting, I'd been to an auction before just as a trial run,
0:21:50 > 0:21:55but this property was second lot up, so we'd to be there early.
0:21:55 > 0:21:57- I'd have liked it to be on a bit later.- Why?
0:21:57 > 0:22:00Give the competition time to buy something else.
0:22:00 > 0:22:04But this was second up, so you were straight into it right away.
0:22:04 > 0:22:07So tell me what you're going to do to sort it out.
0:22:07 > 0:22:14Every room, basically, needs upgraded slightly. Mostly decoration work.
0:22:14 > 0:22:17I'm a bit concerned about the roof and the guttering, which is
0:22:17 > 0:22:20not in very good order, so I'll have someone have a look at it,
0:22:20 > 0:22:24but the rest of it is mostly cosmetic.
0:22:24 > 0:22:26So with that in mind, what's the budget?
0:22:26 > 0:22:31It depends on the roof primarily.
0:22:31 > 0:22:33If that turns out to be quite expensive then
0:22:33 > 0:22:36I would say maybe up to about £5,000.
0:22:36 > 0:22:41If it's purely just a bit of renovation work done to it,
0:22:41 > 0:22:43then...£3,000 I would think.
0:22:43 > 0:22:46You picked a place that doesn't really need much doing to it,
0:22:46 > 0:22:49was that in the game plan?
0:22:49 > 0:22:52It was, yes, I don't want to be employing a lot of people,
0:22:52 > 0:22:54outside contractors and things like that, this suits me
0:22:54 > 0:22:56cos I've got time on my hands.
0:22:56 > 0:23:00- So what do you do when you're not doing this?- I'm a postman.- OK.
0:23:00 > 0:23:03So does that mean early shifts?
0:23:03 > 0:23:07- Not too early, I don't start till eight o'clock.- Eight!
0:23:07 > 0:23:10- For a postman, that sounds late. - Yeah, I'm just part-time.- Oh, OK.
0:23:10 > 0:23:14- Well, it gives you a bit of time to work on this.- Yes.
0:23:14 > 0:23:19# Every morning as true as the clock, somebody hears the postman's knock
0:23:19 > 0:23:21# Every morning as true as the clock
0:23:21 > 0:23:24# Somebody hears the postman's knock... #
0:23:26 > 0:23:29Ian's hoping to get the work done in two months.
0:23:29 > 0:23:32His property developing, plus working as a postman -
0:23:32 > 0:23:36albeit part-time - doesn't sound like much of a retirement.
0:23:36 > 0:23:39But it turns out Ian does relax.
0:23:40 > 0:23:44- I play golf. A lot. - Ah, good place to be then, Scotland.
0:23:44 > 0:23:48Yes, there's half a dozen courses within five miles of here.
0:23:48 > 0:23:49Are you good?
0:23:50 > 0:23:52- Modest.- Handicap?- Eight.
0:23:52 > 0:23:55What do you mean, "modest"? That's pretty good, isn't it?!
0:23:55 > 0:23:57Yes, it's OK. MARTIN LAUGHS
0:23:57 > 0:23:59- Well, congratulations. - Thanks very much.
0:23:59 > 0:24:02Good luck with it, look forward to seeing how you get on.
0:24:04 > 0:24:08Well, property is all about finding the one that suits your needs,
0:24:08 > 0:24:11and I think Ian's certainly done that with this place.
0:24:11 > 0:24:14Not too much work to be done, not too long to do it,
0:24:14 > 0:24:17something he can handle on his own. How will he get on?
0:24:17 > 0:24:19You can find out later in the show.
0:24:21 > 0:24:23Still to come - in Chesterfield,
0:24:23 > 0:24:26and my advice is really quite straightforward.
0:24:26 > 0:24:28HE MUTTERS INCOHERENTLY
0:24:28 > 0:24:29I need to get rid of some of these walls.
0:24:29 > 0:24:31Need to get rid of some of these walls!
0:24:33 > 0:24:36Whilst in Twechar, keen golfer Ian was hoping that his
0:24:36 > 0:24:39simple renovation plans would bag him a hole in one.
0:24:48 > 0:24:49Back to Raynes Park now,
0:24:49 > 0:24:53a popular little London suburb full of really nice properties.
0:24:55 > 0:24:58Although the one-bed garden flat that we found earlier was
0:24:58 > 0:25:00looking a little down-at-heel.
0:25:00 > 0:25:04It was bought for 250,000 by Anita and Behar.
0:25:07 > 0:25:11It was the recently-engaged couple's second development project,
0:25:11 > 0:25:15and despite the obvious problems, they had an ambitious budget.
0:25:17 > 0:25:19Our biggest challenge is to keep the costs down.
0:25:19 > 0:25:22Come on, what's the budget, Anita?
0:25:22 > 0:25:27Well, we think probably about 20, we may well...
0:25:27 > 0:25:30- Behar would like less. 15? - I don't want to see a two in it.
0:25:30 > 0:25:34- "A two in it"! - You're so demanding, Behar!
0:25:34 > 0:25:39- No, no, I don't mind a nine, a one-nine, but not a two-zero.- Right.
0:25:39 > 0:25:41So that's my plan, that's my challenge,
0:25:41 > 0:25:44and that's what I hope to do.
0:25:44 > 0:25:46This flat was a cold, damp shell,
0:25:46 > 0:25:50with the only residents being the woodworm in the kitchen floor.
0:25:51 > 0:25:55Anita and Behar were only interested in selling the property, and had
0:25:55 > 0:25:59given themselves a tight timescale of two months to complete the work.
0:26:02 > 0:26:06Nearly four months later, we've returned to see the results.
0:26:15 > 0:26:20Removing a wall has created a bigger and more open living room which is
0:26:20 > 0:26:24bright and inviting, with no signs of the previous mould problems.
0:26:34 > 0:26:36The kitchen has been gutted
0:26:36 > 0:26:39and the woodworm has been sorted with new floorboards
0:26:39 > 0:26:41underneath the tiling.
0:26:45 > 0:26:46Into the bathroom,
0:26:46 > 0:26:50which has now been transferred into a contemporary wet room.
0:26:55 > 0:26:58The bedroom that was most affected by the mould has no
0:26:58 > 0:27:02signs of it any more and is bright and fresh, with new carpets,
0:27:02 > 0:27:05a clean paint job and a new radiator.
0:27:13 > 0:27:18The back garden has some lovely new decking, and the front of the house
0:27:18 > 0:27:22gives an inviting first impression for any prospective buyers.
0:27:28 > 0:27:33Anita and Behar have indeed poshed this weary little flat up,
0:27:33 > 0:27:36and surely it's now ideal for the sales market in this area.
0:27:39 > 0:27:42When I first walked into the property it was
0:27:42 > 0:27:49an absolute dark, smelly, fungus-infected cave.
0:27:49 > 0:27:53And I thought, "Great." And the reason I thought, "Great"
0:27:53 > 0:27:56was I thought it was going to put lots of people off.
0:27:56 > 0:28:00So it might be a little bit easier at the auction, which is what we want.
0:28:00 > 0:28:01HE LAUGHS
0:28:01 > 0:28:05Considering what the property looked like originally,
0:28:05 > 0:28:07I think the builder - and many thanks to him
0:28:07 > 0:28:11because he's done an excellent job - it does look phenomenal.
0:28:11 > 0:28:14And the nice thing is, walking through the door we had a vision...
0:28:14 > 0:28:19- Mm-hmm.- ..and I think...- This is it. - Excelled, is that the right word?
0:28:19 > 0:28:23- Exceeded.- Exceeded our expectations. So, yes, it does look amazing.
0:28:25 > 0:28:27Yes, excelled AND exceeded if you ask me,
0:28:27 > 0:28:31but like Behar and Anita, I knew this place had real potential.
0:28:32 > 0:28:36However, that doubling of the timescale from two to four months?
0:28:36 > 0:28:41Hmm, I smell trouble, and I bet it's not just that mould.
0:28:41 > 0:28:43It was quite a bit worse than we thought,
0:28:43 > 0:28:47because we initially thought we just had an issue with condensation,
0:28:47 > 0:28:50however, once we started taking everything out,
0:28:50 > 0:28:51lifting out floorboards...
0:28:51 > 0:28:57it was very obvious we had an issue with dry rot,
0:28:57 > 0:28:59with damp coming through the walls,
0:28:59 > 0:29:03so there was a lot of remedial work to do.
0:29:03 > 0:29:07We hired an industrial heater which we left on night and day,
0:29:07 > 0:29:10probably for up to a week, and moved it around,
0:29:10 > 0:29:13because there were various areas that needed to be dried out.
0:29:13 > 0:29:19And we also left all the windows open to create ventilation
0:29:19 > 0:29:21going through, even at night.
0:29:21 > 0:29:24I had to come here early in the morning before
0:29:24 > 0:29:25going to work to close the windows.
0:29:25 > 0:29:29- It was a lot, lot worse than we thought.- Yeah.
0:29:30 > 0:29:33The extent of the damp and dry rot meant that new joists
0:29:33 > 0:29:35and floorboards were needed,
0:29:35 > 0:29:38as well as repointing the exterior up to the chimney,
0:29:38 > 0:29:40which was the cause of the damp.
0:29:42 > 0:29:45All this extra work must have eaten into their 20
0:29:45 > 0:29:48- no, sorry - £19,000 budget.
0:29:48 > 0:29:52Remember? He didn't want a two in the budget.
0:29:52 > 0:29:54The budget?
0:29:54 > 0:30:00I think we're probably about 40% above what we hoped for, but I think
0:30:00 > 0:30:03what we hoped for was probably a little bit unrealistic, wasn't it?
0:30:03 > 0:30:04It was.
0:30:04 > 0:30:08But we've done very well, we're very happy with what we've spent
0:30:08 > 0:30:13and learned a lot about how to create a stunning designer look,
0:30:13 > 0:30:17if you like, for even less than we did with the first project.
0:30:17 > 0:30:22- We're really happy with the way we've evolved as a partnership.- Mmm.
0:30:22 > 0:30:25Well, it doesn't have a two in it after all,
0:30:25 > 0:30:31because that extra 40% equated to a total of 30,000.
0:30:31 > 0:30:35Added to the original purchase price of 250,000,
0:30:35 > 0:30:39that means a total outlay of £280,000.
0:30:41 > 0:30:44The couple are only interested in selling,
0:30:44 > 0:30:48so we've asked two property experts if it's been a sound investment,
0:30:48 > 0:30:51starting with the agent who saw it originally.
0:30:53 > 0:30:55Last time I came here it was riddled with damp
0:30:55 > 0:30:58and certainly not in a very nice condition.
0:30:58 > 0:31:02They've done a lovely, lovely job, it looks, on first impressions,
0:31:02 > 0:31:03absolutely beautiful now.
0:31:03 > 0:31:06I would recommend that it was on the market for resale,
0:31:06 > 0:31:11rather than rental, simply because the yields round here are
0:31:11 > 0:31:15very difficult, because people pay a premium to live in this area.
0:31:15 > 0:31:18With that in mind, what sale price could be achieved?
0:31:20 > 0:31:24I would suggest a price of around about £385,000.
0:31:24 > 0:31:28I would stick the property on the market for £385,000,
0:31:28 > 0:31:34to achieve £365,000 as a minimum, and I wouldn't be surprised,
0:31:34 > 0:31:36with this level of finish and desirability,
0:31:36 > 0:31:38to get the asking price.
0:31:38 > 0:31:46Getting that asking price would mean a pre-tax profit of a huge £105,000!
0:31:46 > 0:31:51We believe that this will go for around 375,
0:31:51 > 0:31:54but I wouldn't be surprised if it achieved a higher figure.
0:31:54 > 0:31:58- So we're more than happy with that. Aren't we?- Very, yes.
0:31:58 > 0:32:02"Very", oh, she is. She's very happy, good, I'm happy then!
0:32:04 > 0:32:07And with the wedding just a month after our visit,
0:32:07 > 0:32:10congratulations to the very happy couple.
0:32:19 > 0:32:23This is the market town of Chesterfield in Derbyshire.
0:32:23 > 0:32:26It's a place with its fair share of historical buildings,
0:32:26 > 0:32:29but my favourite is the crooked and twisted spire
0:32:29 > 0:32:33atop the Church of St Mary and All Saints.
0:32:35 > 0:32:37There are of course lots of stories about its
0:32:37 > 0:32:40weird and wonderful construction, one being that while shoeing
0:32:40 > 0:32:45the devil's hooves, a nervous local blacksmith made a mess of it.
0:32:45 > 0:32:49The agonised Old Nick leapt over the tower and bent it out of shape.
0:32:50 > 0:32:53Well, let's hope today's property is standing a bit straighter.
0:32:53 > 0:32:56About a mile from the centre of Chesterfield
0:32:56 > 0:32:58is the property I'm here to see.
0:32:58 > 0:33:02Two-bedroom semidetached, a guide price of £55,000, plus -
0:33:02 > 0:33:04that's it, let's go in.
0:33:07 > 0:33:10So what's the layout? Well, side entrance obviously.
0:33:10 > 0:33:13Stairs up to your bedrooms there.
0:33:13 > 0:33:15And then through into your lounge, and that is quite nice,
0:33:15 > 0:33:19cos it means you can have this door which you can shut to
0:33:19 > 0:33:21keep out the cold, which is good.
0:33:21 > 0:33:23Although looks like you've got double-glazing,
0:33:23 > 0:33:25central heating, which is nice.
0:33:25 > 0:33:29Not a bad-sized room...hmm, a bit of damp there maybe,
0:33:29 > 0:33:33but it looks OK. Through to the kitchen, and straightaway
0:33:33 > 0:33:34I'm wondering if you could take out
0:33:34 > 0:33:39this wall to create one really nice-sized kitchen/living area.
0:33:39 > 0:33:41Lots of cupboards in here though.
0:33:41 > 0:33:43But of a space over there where you could put something.
0:33:43 > 0:33:47A cupboard under the stairs which is, I guess, a pantry.
0:33:47 > 0:33:50- LAUGHING:- And as you head out here...
0:33:50 > 0:33:54Eurgh! Yet, more sort of space, I suppose.
0:33:54 > 0:33:58But downstairs loo here, little utility area there.
0:33:58 > 0:34:01It's useful, but...
0:34:01 > 0:34:03I need to get rid of some of these walls.
0:34:03 > 0:34:05Need to get rid of some of these walls!
0:34:05 > 0:34:09MUSIC: "Tear Down the Walls" by Davy Knowles & Back Door Slam
0:34:12 > 0:34:16And I think once you've eliminated some of these little walls,
0:34:16 > 0:34:19you could then give yourself several options of how to lay out
0:34:19 > 0:34:24a brand-new open-plan kitchen/diner space. Lovely.
0:34:24 > 0:34:29Well, so much for downstairs, how about upstairs?
0:34:29 > 0:34:32So up here, bathroom exactly where you'd want it to be,
0:34:32 > 0:34:36it's a half-decent size, it needs a bit of renovation, like the kitchen,
0:34:36 > 0:34:37but it's not bad.
0:34:37 > 0:34:40Then two bedrooms, one at the back - eh, decent-sized double.
0:34:40 > 0:34:44One at the front though - absolutely huge, and I wonder if you could
0:34:44 > 0:34:49think about converting that into two, to turn this into a three-bed.
0:34:49 > 0:34:51I guess it depends on your personal circumstances.
0:34:51 > 0:34:53If you're renting it out, talk to the agents,
0:34:53 > 0:34:56find out how much difference that would make. If you're living here,
0:34:56 > 0:34:59do you need one? If you do, do it. If you don't, don't.
0:34:59 > 0:35:02Logical this property developing lark, isn't it?
0:35:10 > 0:35:12You know what I'm saying makes sense.
0:35:12 > 0:35:15But the thing that really needs to be made sense of is
0:35:15 > 0:35:18the downstairs layout beyond the kitchen.
0:35:18 > 0:35:22Other than that, this is a pretty straightforward refurbishment of
0:35:22 > 0:35:26the kitchen and bathroom, and a bit of redecoration from what I can see.
0:35:27 > 0:35:29This used to be a local authority house,
0:35:29 > 0:35:32and it's a well-built, well-proportioned semi.
0:35:33 > 0:35:36In fact, all in all it's a pretty tidy one,
0:35:36 > 0:35:38but not so much on the outside.
0:35:40 > 0:35:43Well, the back garden's not exactly massive
0:35:43 > 0:35:46and it certainly needs a bit of a tidy-up, but it is good to
0:35:46 > 0:35:49have it, and it just adds to the appeal of this property
0:35:49 > 0:35:51as a family home.
0:35:51 > 0:35:53I reckon it's all looking like a very good buy
0:35:53 > 0:35:57if you get it for anything like that guide price of 55,000.
0:35:59 > 0:36:03But what will the local estate agent make of this two-bed semi?
0:36:05 > 0:36:10Good size inside, great size lounge, the kitchen is ideal,
0:36:10 > 0:36:13I would open up the kitchen and keep the toilet downstairs so that,
0:36:13 > 0:36:16if it is a small family, the toilet's handy for them.
0:36:16 > 0:36:20Upstairs just needs a general redecoration
0:36:20 > 0:36:22and the bathroom replaced.
0:36:22 > 0:36:24We're agreed on all those points,
0:36:24 > 0:36:27but what does the agent think would be the best approach for
0:36:27 > 0:36:31this house if you were looking to maximise the return?
0:36:31 > 0:36:34I think if you decided to sell the property you would need to go for
0:36:34 > 0:36:38a little bit more of a higher standard when redecorating
0:36:38 > 0:36:41and thinking about your kitchen and your bathroom,
0:36:41 > 0:36:45to generate interest and get the best price possible.
0:36:45 > 0:36:49If you were going to let the property, I would basically
0:36:49 > 0:36:54redecorate and put a basic kitchen and bathroom in for the time being.
0:36:56 > 0:36:58So far, so straightforward.
0:36:58 > 0:37:02Let's say this was being done up to the highest standard -
0:37:02 > 0:37:04how much could it sell for?
0:37:04 > 0:37:07I believe the property would be worth £95,000
0:37:07 > 0:37:10once the work has been completed.
0:37:10 > 0:37:12And what about the lettings market?
0:37:12 > 0:37:14If the property was to be letted out,
0:37:14 > 0:37:21I believe the rental value would be between £450-495 per calendar month.
0:37:22 > 0:37:25So what do you think, a good one to go for?
0:37:25 > 0:37:29Well, for that £55,000 plus guide price, I think so.
0:37:29 > 0:37:31Let's see who agreed when it went under the hammer.
0:37:35 > 0:37:40Lot number 20 is a large, two double-bedroomed,
0:37:40 > 0:37:43semidetached property in a popular location
0:37:43 > 0:37:45not far from the town centre.
0:37:45 > 0:37:49It's double-glazed but it needs some updating and improvement.
0:37:49 > 0:37:52Start me where you like with that one. May I say 60,000 for it?
0:37:52 > 0:37:5760,000? Who's got 55 on the guide price to put it into the bidding?
0:37:57 > 0:37:5955...he has, thank you.
0:37:59 > 0:38:05At £55,000...55 is the opening bid, 56 I've got on the left.
0:38:05 > 0:38:12At 56,000...57 is bid. 58 now, at 58...59, 60,000?
0:38:12 > 0:38:16£59,000 I've got - 60 down the centre.
0:38:16 > 0:38:2161...61, 62, 63.
0:38:21 > 0:38:2663, 64, 65, 66,
0:38:26 > 0:38:2967, 68...
0:38:29 > 0:38:3769. 500? 69,500, 70,000...500?
0:38:37 > 0:38:39£70,000 then, all done?
0:38:39 > 0:38:42At £70,000, going once...
0:38:42 > 0:38:45going twice, third chance...
0:38:45 > 0:38:47Sold at 70 at the back, thank you.
0:38:48 > 0:38:50The successful bidder was Mark,
0:38:50 > 0:38:52who has a background in the food industry
0:38:52 > 0:38:56and is now full-time property developer with his friend Ben,
0:38:56 > 0:38:58who has his own building business.
0:39:00 > 0:39:02Mark and Ben are old friends
0:39:02 > 0:39:06and they recently decided to set up their own property venture.
0:39:06 > 0:39:09MUSIC: "Let's Work Together" by Canned Heat
0:39:11 > 0:39:14- Mark, Ben, great to meet you both. - Thank you.- Good to meet you, Martin.
0:39:14 > 0:39:16- Congratulations! - Thank you very much.
0:39:16 > 0:39:19Tell me why you wanted to buy this place.
0:39:19 > 0:39:22Well, three or four months ago we did a similar property
0:39:22 > 0:39:26up at Newbold, which is about a mile away from here.
0:39:26 > 0:39:30First one we've done, so got the hang of it,
0:39:30 > 0:39:34knew what we thought we could sell for, this is very similar,
0:39:34 > 0:39:38so we knew going into the auction our ceiling, thought,
0:39:38 > 0:39:41"Right, if we can get it for that, we'll have a go."
0:39:41 > 0:39:44And when you say the property was similar, was it the location,
0:39:44 > 0:39:46- or the layout...?- Both, isn't it?
0:39:46 > 0:39:50Location and layout, just a good, solid-built house basically,
0:39:50 > 0:39:53so there's not a lot to do structurally, it's just
0:39:53 > 0:39:58internal fitments and things like that, bathroom, kitchen, all that.
0:39:58 > 0:40:02- No, it's a nice house, it does feel solid, doesn't it?- Yeah.
0:40:02 > 0:40:05Mark and Ben know what they're doing with this house.
0:40:05 > 0:40:07Not only do they know this area well,
0:40:07 > 0:40:11but they've checked out what the ceiling price is likely to be
0:40:11 > 0:40:14and how much work they need to do to get it.
0:40:14 > 0:40:18The plan is to have the house finished in seven to nine weeks,
0:40:18 > 0:40:21and they've tailored the plan to give themselves a £30,000 profit
0:40:21 > 0:40:23when they sell it.
0:40:23 > 0:40:26- Tell me exactly what you're going to do to it then.- Right.
0:40:26 > 0:40:28Go on, Ben, it's down to you.
0:40:28 > 0:40:33New kitchen, new bathroom, fully redecorated throughout,
0:40:33 > 0:40:37we're going to put a driveway in so you've got off-road parking
0:40:37 > 0:40:41and then tidy up the gardens, bit of landscaping, nothing too expensive.
0:40:43 > 0:40:46- As I say, just make it saleable as a nice family house.- Right.
0:40:46 > 0:40:48The kitchen, one thing that struck me,
0:40:48 > 0:40:50- you've got the exterior area with the loo.- Yeah.
0:40:50 > 0:40:52You've got the cupboard under the stairs,
0:40:52 > 0:40:55and it's all sort of...cupboards here, there and everywhere,
0:40:55 > 0:40:57what are you going to do about all that lot?
0:40:57 > 0:41:00We've looked at that a little, there is a room to the left,
0:41:00 > 0:41:04a utilities room I'm hoping to knock majorly through,
0:41:04 > 0:41:06a single lintel door width through.
0:41:06 > 0:41:08So from one you can access the other,
0:41:08 > 0:41:12with a washing machine/tumble dryer above, and that should lose
0:41:12 > 0:41:15all those doorways that are a bit higgledy-piggledy.
0:41:15 > 0:41:18- It is a bit.- So that should tidy that up without going to the
0:41:18 > 0:41:20great length of taking out big structural walls,
0:41:20 > 0:41:23cos we don't really want to be doing that on the budget.
0:41:23 > 0:41:25So, what's the budget for the work?
0:41:25 > 0:41:30- 5,000.- Five?! - Yeah.- Wow! Tight, tight, tight.
0:41:30 > 0:41:32No, I think it's about right, I've done some working out
0:41:32 > 0:41:34and I think we'll come in OK at that.
0:41:34 > 0:41:36And that's with you doing a lot of the work?
0:41:36 > 0:41:38Yeah, pretty much everything,
0:41:38 > 0:41:41we're not bringing anybody else in apart from a plumber for the
0:41:41 > 0:41:45legal side and an electrician to check out the wiring stuff.
0:41:45 > 0:41:47But everything else we can do ourselves.
0:41:47 > 0:41:49And are you going to be doing a bit of a grunt, or not?
0:41:49 > 0:41:52Absolutely, yeah, we'll be here tomorrow.
0:41:52 > 0:41:54The bathroom's coming out, so yeah.
0:41:54 > 0:41:56Carpets out, strip the kitchen out...
0:41:56 > 0:42:01get it all in my motor, down to the tip... So I do all the graft.
0:42:01 > 0:42:03He puts it all back together again.
0:42:03 > 0:42:07- But it should work all right. - And after this one, another one?
0:42:07 > 0:42:09Yeah, we've got the one in Nottingham, at Mapperley,
0:42:09 > 0:42:12so that's a bigger project.
0:42:12 > 0:42:15That'll probably take us about four months to do that one.
0:42:15 > 0:42:16Then when we've done that, we've got
0:42:16 > 0:42:19the plot of land we're going to separate,
0:42:19 > 0:42:21and we're looking at putting maybe
0:42:21 > 0:42:23- two new builds on that one. - Oh, wow.
0:42:23 > 0:42:27Which he knows all about, built his own property before, so...
0:42:27 > 0:42:28THEY LAUGH
0:42:28 > 0:42:29Make it sound easy.
0:42:29 > 0:42:34Some people find the transition from being mates that go for a pint
0:42:34 > 0:42:38down the pub to working together quite difficult, and it can be...
0:42:38 > 0:42:41- Yeah, of course.- ..not necessarily what you'd hoped for.
0:42:41 > 0:42:44- You obviously haven't found that at all.- No, not at all.
0:42:44 > 0:42:46No, we just get on with it and have a laugh.
0:42:46 > 0:42:49It's good to work with each other, it's good fun
0:42:49 > 0:42:51and we get on with the job.
0:42:51 > 0:42:55We've got the boundaries there, it's 50-50. So everything's shared.
0:42:55 > 0:42:58Listen, nice to meet you both, congratulations, good luck with it.
0:42:58 > 0:43:01- Thank you very much.- Look forward to seeing how you get on.- Thank you.
0:43:03 > 0:43:06Mark and Ben certainly seem to have a great friendship
0:43:06 > 0:43:10and business relationship, and that's not always easy,
0:43:10 > 0:43:12so congratulations to them.
0:43:12 > 0:43:14How are they going to get on sorting this place out?
0:43:14 > 0:43:17Well, I think they've got the right ideas, but 5,000 quid?
0:43:17 > 0:43:19A bit of a tight budget.
0:43:19 > 0:43:22You can find out how it all goes later in the show.
0:43:26 > 0:43:29We hope our buyers have been working away on their investments
0:43:29 > 0:43:32and making themselves some nice little profits.
0:43:32 > 0:43:35Yes, have they managed to achieve all they hoped,
0:43:35 > 0:43:37or have they encountered problems?
0:43:37 > 0:43:39It's time to go back and find out.
0:43:44 > 0:43:46Over now to Twechar,
0:43:46 > 0:43:49a former mining village just 13 miles away from Glasgow.
0:43:51 > 0:43:54Earlier I looked over this two-bed mid-terrace,
0:43:54 > 0:43:56which was bought for just under the
0:43:56 > 0:44:02guide price for £44,000 by ex-banker and part-time postman Ian.
0:44:05 > 0:44:08Ian has done some simple renovations in the past
0:44:08 > 0:44:10and wanted a property that followed suit.
0:44:13 > 0:44:17- So tell me what you're going to do to sort it out?- Mostly...
0:44:17 > 0:44:18decoration work.
0:44:18 > 0:44:21I'm a bit concerned about the roof and the guttering,
0:44:21 > 0:44:23which is not in very good order.
0:44:23 > 0:44:26So I'll have someone come along and have a look at it,
0:44:26 > 0:44:28tell me what they think.
0:44:28 > 0:44:31But the rest of it is mostly cosmetic.
0:44:31 > 0:44:35Ian was planning to renovate with an eye to renting the property out,
0:44:35 > 0:44:39so, five months later, we're back to see how he's done.
0:44:52 > 0:44:55The kitchen has had a simple makeover.
0:44:55 > 0:44:59By keeping the existing units, Ian has been able to keep
0:44:59 > 0:45:02costs down, but he has had to put down
0:45:02 > 0:45:05new flooring and replace the ceiling.
0:45:09 > 0:45:12In the hallway, the downstairs cloakroom has been replaced
0:45:12 > 0:45:15with a fresh new unit plus a new radiator.
0:45:18 > 0:45:22Moving upstairs, the clean and neutral decor continues,
0:45:22 > 0:45:25making it ideal for prospective renters.
0:45:38 > 0:45:42Outside, the roof that had Ian worried turned out
0:45:42 > 0:45:43to be in good shape,
0:45:43 > 0:45:46with only a few tiles needing to be replaced
0:45:46 > 0:45:48and the guttering bringing up to date.
0:45:52 > 0:45:53I'm looking forward to finding out
0:45:53 > 0:45:57whether this seemingly simple renovation was simple to execute.
0:46:02 > 0:46:06Very happy with the way that the development's turned out.
0:46:06 > 0:46:11A wee bit over time, but very pleased with the end result.
0:46:11 > 0:46:14Ian didn't have as much spare time as he'd hoped
0:46:14 > 0:46:15in which to do the renovation,
0:46:15 > 0:46:19with his part-time postman role becoming more demanding
0:46:19 > 0:46:23with the Christmas rush, added to some all-important time off.
0:46:23 > 0:46:25I thought it would take me about two-and-a-half months,
0:46:25 > 0:46:27and it's taken about three-and-a-half.
0:46:27 > 0:46:30Mainly due to, when we started it at first,
0:46:30 > 0:46:33I was working full-time and didn't have time to do much.
0:46:34 > 0:46:36And also I was on holiday for two weeks,
0:46:36 > 0:46:41my wife and I went to Tunisia for a week and Prague for a week.
0:46:41 > 0:46:44And when you've returned from holiday,
0:46:44 > 0:46:48you're not really that keen to get straight into painting
0:46:48 > 0:46:52and decorating, so it was a slower process than it might have been.
0:46:52 > 0:46:55They certainly didn't waste time once they'd shook off
0:46:55 > 0:46:57the post-holiday blues though.
0:46:57 > 0:47:00What exactly has been done here?
0:47:00 > 0:47:04The whole house has been...completely redecorated.
0:47:04 > 0:47:07Every surface has got at least two coats of paint on it.
0:47:07 > 0:47:13The kitchen's been upgraded, the downstairs toilet has been
0:47:13 > 0:47:16stripped back to bare bones and rebuilt.
0:47:16 > 0:47:20It was my intention just to remove the toilet completely
0:47:20 > 0:47:25and return the house to the way it was built, but in listening to
0:47:25 > 0:47:30some advice, we decided to reinstate the toilet and upgrade it.
0:47:30 > 0:47:35I did all of the work in the house, apart from the specialist stuff
0:47:35 > 0:47:41like the central heating, some of the electrical work and the plastering.
0:47:41 > 0:47:44Everything else I've taken care of myself.
0:47:44 > 0:47:47With the roof work costing only £380,
0:47:47 > 0:47:52that £3,000 budget must be looking in good shape.
0:47:52 > 0:47:55So far we've spent £2,700.
0:47:55 > 0:48:00There's a couple of small things to do that won't cost very much,
0:48:00 > 0:48:03and it'll still be below the £3,000.
0:48:03 > 0:48:06Work still needs to be done to the back garden,
0:48:06 > 0:48:10but considering Ian added an electric fire and a fridge freezer,
0:48:10 > 0:48:14keeping the budget under £3,000 is certainly impressive.
0:48:18 > 0:48:21Ian reckoned this house was for rental in the short term and
0:48:21 > 0:48:24for sale much later on due to the slow state
0:48:24 > 0:48:26of the local resale market.
0:48:26 > 0:48:31But with a total investment of £47,000, is this the best choice?
0:48:32 > 0:48:35We asked two estate agents their opinions.
0:48:36 > 0:48:38Property's in really good order.
0:48:38 > 0:48:42Good accommodation, good-sized rooms, will appeal to
0:48:42 > 0:48:45a lot of clients as you don't need to spend anything on it at all.
0:48:45 > 0:48:47I think he's refurbished the bedrooms
0:48:47 > 0:48:51and lounge to a very good standard, neutral, which is very appealing
0:48:51 > 0:48:54to any sort of buyer, they can come in and make
0:48:54 > 0:48:57their own stamp on it, whether they want to do a feature wall or not.
0:48:57 > 0:49:00I think the bathroom and the kitchen is very clean
0:49:00 > 0:49:02and that will stand out.
0:49:03 > 0:49:06But will it stand out enough to make a profit?
0:49:06 > 0:49:09I had a niggle that there might not be room to add
0:49:09 > 0:49:11much in the way of profit here,
0:49:11 > 0:49:17so would Ian's £47,000 investment stack up on the resale market?
0:49:17 > 0:49:23We would advise to market the property between £70,000 and £75,000.
0:49:23 > 0:49:26The current sales evaluation in today's market would be
0:49:26 > 0:49:30approximately between £65,000 and £70,000.
0:49:32 > 0:49:36Those valuations mean a possible profit before tax
0:49:36 > 0:49:40of between £18,000 and a whopping £28,000.
0:49:41 > 0:49:44Will the rentals prove as impressive?
0:49:44 > 0:49:46The current rental market valuation would be
0:49:46 > 0:49:51approximately £450 to £475 per calendar month.
0:49:51 > 0:49:55We would be looking to achieve about
0:49:55 > 0:49:57£475 per calendar month.
0:49:57 > 0:50:01Terrific. My plan all along was to make
0:50:01 > 0:50:06about £425, so £450, £475 is great.
0:50:06 > 0:50:08- Really happy with that. - Ian should be happy.
0:50:08 > 0:50:13That top valuation of £475 could create a possible yield
0:50:13 > 0:50:19of around 12%, making this project a big success.
0:50:19 > 0:50:22Next for me is back to playing a lot more golf.
0:50:22 > 0:50:24I've played three games this year,
0:50:24 > 0:50:28I've played in a medal just at the weekend there, and I'm afraid
0:50:28 > 0:50:31it showed that I haven't played very much cos my score was dreadful.
0:50:31 > 0:50:35So I intend to get a lot more practice in and go another holiday.
0:50:41 > 0:50:44No time for holidays in Chesterfield, Derbyshire,
0:50:44 > 0:50:48where earlier I met friends and business partners Mark and Ben,
0:50:48 > 0:50:52who intended transforming this local authority house
0:50:52 > 0:50:56purchased for £70,000.
0:50:56 > 0:50:58They hope to make £30,000 profit from the house,
0:50:58 > 0:51:03but this meant they weren't going to be splashing the cash.
0:51:03 > 0:51:08- So what's the budget for the work? - 5,000.- Five?!- Yeah.- Wow, tight.
0:51:08 > 0:51:12- Tight, tight, tight.- No, about right, I think it's about right.
0:51:12 > 0:51:14I've done some working out and I think we'll come in OK.
0:51:14 > 0:51:16And that's with you doing a lot of the work.
0:51:16 > 0:51:19Pretty much, we're not bringing in anybody else
0:51:19 > 0:51:22apart from a plumber for the legal side
0:51:22 > 0:51:25and an electrician to check out the wiring stuff,
0:51:25 > 0:51:27but everything else we can do ourselves.
0:51:27 > 0:51:31- And are you going to be doing a bit of grunt?- Absolutely, yes.
0:51:31 > 0:51:35They were no property novices, and it did seem like a
0:51:35 > 0:51:39pretty straightforward refurbishment of a solid house.
0:51:39 > 0:51:42They planned to do the work in seven to nine weeks.
0:51:42 > 0:51:46Well, four months later, it's all looking prim and proper.
0:52:00 > 0:52:03OK. In the kitchen, we've basically taken out
0:52:03 > 0:52:05all the old existing units,
0:52:05 > 0:52:09we've kept the stainless steel sink and taps from the existing kitchen.
0:52:09 > 0:52:12The thing I like best is probably this range cooker.
0:52:12 > 0:52:15I think it works really well set inside the existing chimney breast,
0:52:15 > 0:52:18with the extractor, which also extracts into filters
0:52:18 > 0:52:22but does actually extract into the chimney itself, which is a bonus.
0:52:22 > 0:52:26Yeah, I'm absolutely really pleased with the whole thing.
0:52:26 > 0:52:29Utility rooms at the back of the kitchen have been cleaned up,
0:52:29 > 0:52:33and a sink has been added to the downstairs cloakroom - a nice touch.
0:52:56 > 0:53:00From top to bottom, each room has been stripped and re-plastered,
0:53:00 > 0:53:04as well as all-new carpets and flooring throughout the property.
0:53:21 > 0:53:25The brand-new bathroom has been rejigged and is much more practical.
0:53:27 > 0:53:30As is the front of the property. Mark explains all.
0:53:32 > 0:53:36OK, so what we've done out here, quite a bit of work actually,
0:53:36 > 0:53:40there was a lawn here with borders round the edge there,
0:53:40 > 0:53:44and here, where I'm stood, there was quite a high border,
0:53:44 > 0:53:48so we've dug all that up, few skip loads, got rid of it,
0:53:48 > 0:53:52put in all these edging stones as you can see.
0:53:52 > 0:53:55Nice border there, and as you can see now,
0:53:55 > 0:53:58we've got room for off-road parking for two cars.
0:53:58 > 0:54:00That is very smart and practical,
0:54:00 > 0:54:03and they've used a surface which allows the water to drain away,
0:54:03 > 0:54:09which in these days of increased flooding, is really vital!
0:54:09 > 0:54:12And what about that less than tidy garden at the back?
0:54:12 > 0:54:15Well, it's neater and has been prepared for re-seeding,
0:54:15 > 0:54:18so a nice lawn will appear eventually.
0:54:18 > 0:54:21The boys have worked hard to create a bright and appealing property,
0:54:21 > 0:54:26but it certainly wasn't as "straightforward" as they'd hoped.
0:54:28 > 0:54:32- Taken ten weeks in total, time on the job.- Yeah, to do the job.
0:54:32 > 0:54:36We initially thought about seven, but we had a few issues.
0:54:36 > 0:54:40The whole place needed rewiring, which we didn't budget for,
0:54:40 > 0:54:42so obviously that took extra time
0:54:42 > 0:54:44and we had to wait for the electrician to come.
0:54:44 > 0:54:47When we stripped the wallpaper off,
0:54:47 > 0:54:50it actually looked OK the first time you came and filmed, cos it
0:54:50 > 0:54:55was all blank wallpaper, then when we took it off, opened a can of worms!
0:54:55 > 0:54:57Loads of plaster came off.
0:54:57 > 0:55:01Yeah, quite a bit more time than we thought to do the
0:55:01 > 0:55:03initial preparation of the walls.
0:55:03 > 0:55:06- Should have been straightforward really, shouldn't it?- Mm.
0:55:06 > 0:55:07And it wasn't.
0:55:09 > 0:55:12It just goes to show you never know what's
0:55:12 > 0:55:16lurking behind seemingly perfect wallpapered walls.
0:55:16 > 0:55:18And talking of walls,
0:55:18 > 0:55:21how did they deal with the many walls at the back of the house?
0:55:21 > 0:55:25The utility rooms, it's sort of basically through here,
0:55:25 > 0:55:28as you came in the back door there was a bit higgledy-piggledy,
0:55:28 > 0:55:31a toilet to the right and another door straight ahead.
0:55:31 > 0:55:33Which you couldn't really do anything with,
0:55:33 > 0:55:36so I wanted something to come straight off the kitchen,
0:55:36 > 0:55:39so we just took another door through into the room you would have
0:55:39 > 0:55:43come in from the back of the kitchen, to create where you can put in
0:55:43 > 0:55:48plumbing now for a washing machine, tumble dryer above it, shelf...
0:55:48 > 0:55:53- So it's made useful space.- It wasn't very useful before.
0:55:53 > 0:56:00- No, it was all higgledy-piggledy, but I think it's worked well.- It has.
0:56:00 > 0:56:05It's the second one we've done and I generally do the stripping
0:56:05 > 0:56:10'and painting and putting kitchen units together,'
0:56:10 > 0:56:13and Ben will do the more constructive stuff,
0:56:13 > 0:56:17the more skilled work, which is what he's really good at.
0:56:17 > 0:56:20That partnership works well doing that.
0:56:20 > 0:56:24I thought their original budget of £5,000 was tight,
0:56:24 > 0:56:28but given that they've had to rewire and re-plaster, I think
0:56:28 > 0:56:32they've done really well to come in at 7,000.
0:56:32 > 0:56:35Add that spend to the purchase price of 70,000
0:56:35 > 0:56:38and that's an investment of £77,000.
0:56:38 > 0:56:40The question is, have Mark and Ben
0:56:40 > 0:56:44done enough to make their target profit of 30,000?
0:56:44 > 0:56:48Time for two local property agents to tell us if they can achieve it.
0:56:48 > 0:56:53The sale price of this property would be somewhere between
0:56:53 > 0:56:54£110,000 and £115,000.
0:56:54 > 0:56:57I think if the property was put on the open market it would
0:56:57 > 0:57:01probably be looking to achieve somewhere about the £110,000 mark,
0:57:01 > 0:57:03with the specification being so good
0:57:03 > 0:57:07you may even try that a little higher, possibly up to 115.
0:57:07 > 0:57:10But I'd probably value it somewhere around the £110,000.
0:57:10 > 0:57:12That's what it's on the market for.
0:57:12 > 0:57:18When we first set it up we thought 110, but cos it looks a bit better
0:57:18 > 0:57:22and better spec, we went for 115 cos we can always come down a little bit.
0:57:22 > 0:57:24Yeah, sounds good.
0:57:24 > 0:57:27If they sell for that top valuation of 115,000,
0:57:27 > 0:57:32that would be a profit of £38,000 minus taxes and fees,
0:57:32 > 0:57:36comfortably over the £30,000 they'd hoped for.
0:57:36 > 0:57:37Not bad for ten weeks' work.
0:57:39 > 0:57:43So, will this successful building partnership go to auction again?
0:57:43 > 0:57:48- Definitely.- Yeah, absolutely. It's been a good experience.
0:57:50 > 0:57:52We'll have more properties
0:57:52 > 0:57:55and more enthusiastic buyers for you next time.
0:57:55 > 0:57:58Yes, and make sure you join us here on Homes Under the Hammer.
0:57:58 > 0:57:59- Goodbye.- Goodbye.